19 NFT Investing Lessons I Learned

August 17, 2022

19 NFT Investing tips

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I made (and lost) a lot of money in NFTs.

I wish I knew these lessons earlier.

19 NFT investing tips you need to know:

0. FIRST OF ALL, this isn't financial advice.

it's just personal experience.
A lot of other successful styles work, too.

1. Buy at the knees, sell at the shoulders.

don't try to buy at the absolute bottom.don't try to sell at the absolute top.
because you won't get it and you'll be disappointed.
make decisions that are close enough and towards the right trend.

2. Do not put all eggs in one basket.

don't bet all your money on 27 @AzukiOfficial's
(Even though they are amazing!)
Diversify to different NFT projects to reduce risks.

3. When ETH is up, NFT goes down. vice versa.

@NathanCRoth makes the point with data proof.

4. Choose projects with the utility you ACTUALLY like.

so if prices fall, you still have a benefit you enjoy.

5. Don't fomo in.

but leverage it based on how others will react to it.

6. Aim for high potential NFTs.

can this project 10x?
so even if it doesn't meet your expectations, you could still get a big return.
make bets with asymmetric upside.

7. Play big.

don't spend hours flipping 0.07 ETH projects.
As @BanklessHQ mentioned once, the people making money are buying/selling the high-floor NFTs.
now that being said, read the next tweet.

8. Invest within your range.

A VC firm that raised $100M won't suddenly invest $50M on a startup.
they have their range.
know the range you're comfortable playing in...and losing in.

9. What should you look for in an NFT?

here's a good article we wrote at @withsmoothie

10. Buy a little above the floor.

It's less competitive and you'll sometimes find NFTs priced incorrectly.

11. Your network is your signal.

1 reliable friend mentions a project = it's noise.2 reliable friends mention a project = it's a signal.
your network is important.
if you don't have one yet, create a small group with friends to share learnings.
or join an alpha group!

12. Whitelist grinding takes forever.

Spend more time building instead.

13. Don't be afraid to take profits.

This one's important.
Applause for the good game you play!

14. You're gonna make mistakes.

It's okay. It's inevitable.
there will be plenty more opportunities.
take a breath. learn from it. and move on.

15. Opportunity cost.

if you're holding an NFT worth 1 ETH, that's 1 ETH you're not putting into a different project.
Always consider the cost of the opportunity you're not taking.

16. Sell during a bull market. buy during a bear market.

it's simple, but hard.
if everyone's thinking the same thing, get suspicious.

17. Stay in the game.

bear markets will come, and bull markets will come too.
but you can’t take advantage of this if you lose everything.
don’t risk it all.
you have to stay in the game.

18. Be careful with debt.

using leverage, you can increase your ROI.
but when things go poorly, you also lose a lot more.
don’t get too greedy.

19. Have fun.

we're in an era where you can sell a JPEG for $100k+.
how wild is that?
enjoy the journey.

Key takeaway:

There are books, blogs, and tweets about NFT trading.

All roads lead to Rome.

You can make your way out of it, too!

What are your lessons about NFT?


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